Hibah In Islamic Banking

No Name Matric Number Signature 1 SHAVITA D/O PADMANATHAN BB21110726 2 SITI RUMIZA BINTI SALLEH BB21110636 miza 3 ALFEMA AMPOH BB21161067 fema 4 ABDUL RASHID BIN ABDURAHMAN BB21110286 5 NUR AZAH RATNASARI BT ABDUL TAHIB BB21110236 Azahrs 6 AZRAN SYAZWI BIN ABDUL RAZAK BB21110720 FACULTY OF BUSINESS, ECONOMICS AND ACCOUNTANCY UNIVERSITI MALAYSIA SABAH Islamic Financial Economics (BF30703) SEMESTER 2, 2023/2024 SECTION 1 GROUP ASSIGNMENT Title: Hibah In Islamic Banking PREPARED TO: Mdm. Dayangku Aslinah Abd. Rahim Hereby, we declare that the work contained in this assignment is our own, except where acknowledgement of sources is made. PREPARED BY: Submission Date: 04 June 2024 Azran

TABLE OF CONTENTS 1.0 Introduction 01 2.0 Literature Review 02 3.0 Issues And Challenges 08 4.0 Recommendations And Discussion 12 5.0 Conclusion 17 References 18

Hibah, a concept rooted in Islamic finance and law, refers to the act of gifting or granting assets during one's lifetime. It serves to transfer wealth to individuals beyond the traditional inheritance systems of wasiyyah (bequest) or faraid (succession) (Hassan & Zaizi, 2020). The concept of hibah involves the voluntary transfer of assets by a donor to a recipient during the donor's lifetime, reflecting the principles of generosity and benevolence within Islamic teachings. In Malaysia, hibah is a significant aspect of Islamic financial practices and wealth distribution. The practice of hibah in Malaysia has gained traction, with various companies offering hibah services to facilitate asset planning and management for Muslims. Entities such as Syarikat Amanah Hibah Sdn Bhd and Wasiyyah Shoppe provide avenues for individuals to initiate their asset planning through the instrument of hibah (Kamis & Wahab, 2021). Hibah in Islamic banking is a significant component of the financial system in Malaysia. It is commonly used as a gift to compensate account holders in Islamic banks, illustrating the ethical and moral underpinnings of Islamic banking based on Shariah law (Eid & Asutay, 2019). Hibah is recognized as one of the fundamental principles of Islamic transactions implemented in Islamic financial institutions in Malaysia, underscoring its significance in wealth management and asset distribution. The advancements in hibah as an instrument in Islamic finance and Islamic estate management in Malaysia showcase the evolving nature of hibah within the financial sector (Rahim et al., 2021). Islamic banks have the authority to provide hibah to depositors of wadiah yad damanah and charge safekeeping fees from depositors of wadiah yad amanah, aligning with the principles of Islamic finance (Altwijry et al., 2021). Hibah in Islamic banking is a manifestation of the ethical and moral dimensions of Islamic finance. It underscores the importance of voluntary generosity and mutual support, aligning financial practices with the broader principles of Sharia. By incorporating hibah into their operations, Islamic banks not only comply with religious principles but also contribute to social welfare and ethical conduct in the financial sector. Hibah In Islamic Banking 01

Hibah, meaning "gift" in Islamic law, is governed by specific rules and requirements to ensure the transaction is legal and binding. These regulations are crucial for maintaining the purity and intent of hibah, ensuring it complies with Sharia law. Hibah refers to the voluntary transfer of ownership from one person to another while the giver is still alive, differing from a will, which takes effect after death. Hibah allows for the giving of money or assets to both family members and non-family members, irrespective of their religion, and is supported within Islam. It is a vital component of estate planning, ensuring that assets are distributed to the intended recipients during the owner's lifetime. Additionally, hibah is utilized as a Sharia-compliant contract in Islamic banking. From the primary sources, taking into account, such as Al-Quran and Hadith, as well as trusted and applicable Acts of Malaysia and secondary sources, such as journals and articles that are linked to hibah, may be used to provide evidence. In addition, Saputra, J., Sudiarti, S., & Husna, A. says, hibah is significant as it allows a landowner or settler to distribute more of their wealth to anyone, regardless of religion, including family members and nonfamily members. This practice differs from faraid, which governs inheritance distribution upon death according to Sharia Law. The Quran supports the act of giving gifts: “ …Righteousness is not in turning your faces towards the east or the west. Rather, the righteous are those who believe in Allah, the Last Day, the angels, the Books, and the prophets; who give charity out of their cherished wealth to relatives, orphans, the poor, needy travelers, beggars, and for freeing captives; who establish prayer, pay alms-tax, and keep the pledges they make; and who are patient in times of suffering, adversity, and in the heat of battle. It is they who are true in faith, and it is they who are mindful of Allah. ” (Surah Al-Baqarah 2:177). Hibah is described as a voluntary act of giving without the expectation of return (Saputra, J., Sudiarti, S., & Husna, A., 2021). What is Hibah? What is Hibah? Hibah In Islamic Banking 02

Islamic estate planning says that the way hibah is used in Malaysia is very worrying. The figures can be caused by a number of things. One of them is that most nations don't use hibah very much. In Malaysia, there are still not many Muslims who use hibah to give away their property. A lot of people don't know what hibah is or don't know how to use it properly for estate planning. A lot of experts have written about this topic in their works and shared their thoughts and suggestions for how to solve the issues. Rasyid and Yaakub (2010) say that Muslim groups in Malaysia are still not very interested in planning their homes for the rest of their lives. Also, Buang (2009) said that people still don't care about planning their estates while they are still alive for their family. He said in 2008 that hibah is a very important tool that should be used to keep families from fighting over who gets what, which can cause problems with frozen estates. Muslims in Malaysia who want to help should be urged to give hibah even while they are still alive (Kamarudin and Alma'mum, 2013; Mujani et al., 2012; Rasyid and Ahmad, 2013; Rasyid et al., 2013). With this in mind, the low rate of hibah giving among Muslims has made people wonder what makes people in Malaysia give hibah. Additionally, the researchers hold the opinion that the use of the conditional "hibah" in the language of the trust "hibah" is in direct opposition to the academic requirements. As per the explanation offered by Othman et al. (2017), these requirements may be enforced in specific circumstances or during a specific time frame. From an alternative perspective, the research conducted by Halim and Bustami (2017) indicates that the trust "hibah" is associated with issues related to the selection of trustees in situations where the grant beneficiary is not considered to be among the "mahjuralaihi, " such as minors and individuals who are mentally incompetent. Due to this observation, the trust "hibah" grantor's sincere intentions are brought into question. In addition, the delivery process (also referred to as "qabd") and transactions (also referred to as "tasarruf") that are associated with the transfer of trust assets do not occur during the lifespan of the trust grantor (Muda, 2008); rather, they are established purely technically. The study outlined above suggests that the commercialization of trust arrangements, known as "hibah, " in the Malaysian financial sector is closely linked to Sharia-related concerns. The application of the pillars and conditions of trust within the "hibah" may not be in accordance with the Sharia criteria due to the ambiguity surrounding the implementation. Continued..... Hibah In Islamic Banking 03

The Arabic term "wahaba" is the source of the term "hibah, " which translates to "giving without consideration." In the context of Islamic wealth management planning, hibah is the act of donating to another individual during the donor's lifespan. The division of hibah is not restricted to any distribution, such as a will, which is an advantage (Muda, 2008). In Islam, wills are also encouraged, with a restriction of one-third of the inheritance intended for non-beneficiaries (Muda, 2008). Although their definitions are nearly identical, hibah, gift, and sadaqah are distinct. The distinction lies in the purpose of the donation. A gift is given out of appreciation and affection, while sadaqah is given in order to receive a reward from Allah (Zuhaili, 1999). In summary, all gifts and sadaqah are hibahs; however, not all hibahs are gifts and sadaqahs (Muda, 2008). Hibah giving has been practiced since the time of Prophet Muhammad, who personally both gave and received hibah (Zuhaili, 1999). In the context of hibah as estate planning, Malaysian Muslims have long practiced hibah, albeit primarily verbally and without any documentation (Hisyam and Muhamad, 2010). Hibah is administered to a family member, including parents to their offspring, husbands to spouses, and grandparents to descendants. It is anticipated that the religious value factor will have a substantial impact on the behavior of giving hibah. In Islamic matters, religious value is a personal practice. It encompasses mandatory ibadah (acts of worship), including obligatory prayers, zakat payment, Ramadan fasting, and, if feasible, pilgrimage to Hajj. In addition, there are activities that are commended in Islam, such as perusing the Quran and religious texts. Idris et al. (2012) assert that individuals are more likely to engage in religious obedience when they are consistently engaged in a variety of religious activities. Additionally, intentions and conduct associated with religious observance will be influenced by elevated religious values (Idris et al., 2012). The religious factor should be tested, as it is believed to have a significant impact on Muslim behavior, despite the fact that measuring religious value is a challenging task (Ghazali, 1989) (Idris et al., 2012). Weaver and Agle (2002) also emphasized that the religion had an impact on a variety of behaviors, including ethical behavior. Hibah Giving Behaviour Hibah In Islamic Banking 04

The religious factor has been identified as a significant factor in the influence of various behaviors, particularly in Islamic environments. Bakar and Rasyid (2010) found that religious values substantially influence compliance behavior in the context of zakat compliance behavior. Additionally, Osman et al. (2015) and Osman (2014) demonstrated a substantial correlation between religious factors and waqf giving behavior. In additional research, Tang and Tang (2010) acknowledged that religious values have a substantial impact on unethical behavior. In accordance with the aforementioned arguments, this study anticipates that Muslims who possess a high level of religious esteem will have a greater propensity to perform hibah. Continued... H1: The act of giving hibah is positively influenced by religious values. Hibah In Islamic Banking 05

In addition to religious values, an individual's behavior is influenced by their attitude. Mueller (1986) posits that the decision-making process of individuals is influenced by their attitudes towards objects, events, or organizations. In the theory of planned behavior, attitude is the most significant factor or critical variable in predicting behavioral intention (Ajzen, 1991). Ajzen (1991) defines attitude towards behavior as an evaluation of behavior. The evaluation is divided into two parts. The initial evaluation is positive, as it will provide a positive assessment of the behavior, whereas the second evaluation will provide a negative assessment of the behavior. In this investigation, the term "attitude towards hibah" refers to the manner in which a Muslim assesses hibah as either beneficial or detrimental, and it will influence their decision to perform hibah. Research conducted in a variety of settings has verified that behavioral intention is substantially influenced by attitude. In Malaysia, Amin et al. (2011) discovered that an attitude was associated with a higher behavioral intention to utilize Islamic personal financing. The behavioral intention is substantially influenced by a positive attitude in other Islamic contexts, such as halal cuisine and halal products (Alam and Sayuti, 2011; Lada et al., 2009) and zakat context (Saad et al., 2010). In addition, Kautonen et al. (2013) and Malebana (2014) conducted additional research that demonstrated that attitude significantly influences entrepreneurial behavioral intention. The same phenomena were also observed by Mishra (2014) and Teo and Lee (2010) in the context of information technology. In accordance with the discussion, it is anticipated that Muslims who maintain a positive attitude towards hibah will be more inclined to perform hibah, and the reverse is also a possibility. Attitude H2: The behavior of giving hibah is positively influenced by one's attitude. Hibah In Islamic Banking 06

An organization's service quality is an external factor that will affect behavior in a variety of environments. The quality of service provided by organizations is crucial in promoting customer satisfaction and encouraging Muslims to perform hibah. Based on disconfirmation theory, (Bitner, 1990) emphasized that customers will be satisfied with the quality of the service if it meets or exceeds their expectations. Service quality is the comparison between the perception of the organization's service and the consideration of customers, as defined by Parasuraman et al. (1985). Therefore, in this investigation, service quality is defined as the Muslim perceptions of the service provided by hibah institutions, which encompasses the accuracy of the information, communication, and facility. If the services provided by the hibah institution surpass their expectations, customers will experience satisfaction. Service quality is a critical factor in determining consumer behavioral intentions in public sector banking in India, as reported by Mittal and Gera (2013). In the chain store restaurants, Chou et al. (2014) also discovered a substantial impact of service quality on consumer behavior. This study anticipates that the service quality of hibah institutions will contribute to improved hibah giving behavior, as indicated by the aforementioned arguments. Consequently, the subsequent hypothesis is developed. Service Quality H3: The behavior of hibah giving is positively influenced by service quality. Hibah In Islamic Banking 07

Hibah is a voluntary contract that results in uncompensated ownership transfer between living individuals, and it has been practiced in the family Takaful products offered by some Takaful operators (Syed Ahmed Salman and Sheila Nu Nu Htay,2013). However, there are several challenges associated with Hibah. One of the main challenges of Hibah is Inheritance Implications. Since Hibah allows the transfer of assets during one's lifetime, it can lead to disputes among heirs regarding the distribution of assets upon the donor's death. According to Sukati, this challenge arises when the assets transferred through Hibah are substantial and not taken into account during the calculation of inheritance shares, leading to inequality among heirs. Research shows that knowledge, religiosity, and self-efficacy significantly influence hibah practice among Muslim communities. Hibah is a means of estate disposal for Muslims, and understanding hibah is necessary to resolve inheritance issues, especially among new Muslim converts (Muallaf). Hibah is an alternative in distributing Muslims' property, which may help reduce the increasing number of frozen assets in Malaysia. However, the legal issues and challenges related to Hibah in Malaysia include the lack of an established legal framework for Hibah management. The frozen estate problems should be solved because it can give negative impacts on the economy and social of Muslim in Malaysia. Even though the society already knew about the importance of estate planning for themselves, but the Hibah giving behavior among Muslim in Malaysia is still low In the context of inheritance, Hibah can lead to disputes among heirs regarding the distribution of assets upon the donor's death. This challenge arises when the assets transferred through Hibah are substantial and not taken into account during the calculation of inheritance shares, leading to inequality among heirs. Therefore, ensuring the validity of the Hibah transaction and specifying terms and conditions in the gift deed is crucial to avoid disputes and legal issues. In summary, Hibah is a legal concept in Islamic law that allows for the transfer of assets during one's lifetime. However, its potential impact on inheritance implications is a significant challenge. Research shows that knowledge, religiosity, and self-efficacy significantly influence hibah practice among Muslim communities. The legal issues and challenges related to Hibah in Malaysia include the lack of an established legal framework for Hibah management. Therefore, ensuring the validity of the Hibah transaction and specifying terms and conditions in the gift deed is crucial to avoid disputes and legal issues. Hibah In Islamic Banking 08 Inheritance Implications

Also there is a lack of transparency. Lack of transparency in the Hibah technique and explanation may create suspicions about the donor's motives, resulting in charges of favoritism or unethical practices. Islamic hibah may powerfully give money to loved ones or recipients while living. Hibah's method and rationale may produce complicated family difficulties like partiality if they are unclear. Family members may accuse a donor of partiality or prejudice for providing a Hibah without explanation. If they believe the Hibah recipient is favored, other heirs or beneficiaries may feel excluded. Uneven treatment may strain family relationships and generate conflict. Lack of openness in Hibah decisions encourages mistrust and guessing. Alienated or neglected people may feel uneasy and dissatisfied if family members doubt them. Questions like these may damage trust, which is essential for family and ethical conduct. Family trust requires transparency. When receivers don't know the Hibah's full worth or the donor's intentions, family relationships may become secretive. Family connections and Islamic norms of obligation and respect need trust. Secrecy may harm family relationships and communication. Family members may be reluctant to discuss money or express views due to worries about unfairness or lack of transparency. Trust loss may affect relationships, family connections, and decision-making. Secrecy in hibah transactions may confuse family members. If the giver doesn't clarify, heirs may presume the gift's purpose. Family conflict may result, threatening peace and coherence. Honest communication is crucial to avoid misunderstandings and ensure everyone understands the Hibah transaction and its implications. Openness and honesty help families address conflicts early on, building trust and respect. Hibah addresses legal and inheritance issues. Hibah may confuse a donor's inheritance distribution, causing legal complications. Islamic inheritance regulations (Faraid) may cause heirs to doubt the Hibah. Lack of documentation or communication of Hibah's effect on inheritance may lead to family legal issues, exacerbating family friction and making estate settlement harder. Donors and families must confront Hibah's secrecy. Open communication, thorough documentation, consultation with respected academics or legal professionals, and a strong devotion to justice are crucial to promoting openness in Hibah transactions and family trust, harmony, and ethics. Islam Hibah practice is based on transparency, not process. Transparency and honest communication may strengthen family ties, avoid misinterpretations, handle legal concerns, and foster trust, equality, and harmony in Hibah wealth transfer. Disclosure in Hibah transactions is legal, ethical, and vital for Islamic family harmony. Hibah In Islamic Banking 09 Lack Of Transparency

Conditional hibah in takaful naming is a practice where takaful participants name someone to receive takaful benefits upon their death as a beneficiary under a conditional hibah (gift). Conditional hibah also known as takaful hibah, is only used for Family Takaful and Personal Accident Takaful and can be implemented when the donor dies and only for takaful products (Dev, 2021). Conditional Hibah is a controversial issue among Islamic jurists in terms of the conditions imposed between the Hibah provider and the Hibah recipient. Since this issue is still disputed among Islamic jurists, provisions of the Islamic Financial Services Act (IFSA) were introduced to legalize conditional hibah contracts in takaful products and services, which depend on the death of takaful participants. However, there is still controversy that the designation made by takaful participants especially as beneficiaries under conditional Hibah can be misused in cases where takaful participants can decide to name any person (from family members) to receive takaful benefit payments because there are no restrictions imposed under Section 142 of Schedule 10 of IFSA. In addition, there are opinions that suggest that conditional Hibah contracts, as permitted under IFSA, may be misused by takaful participants to deny the rights and benefits of legitimate heirs since the Act does not clearly interpret the meaning of beneficiaries referred to under conditional Hibah, also does not have a specific provision stating that the beneficiary must be someone who has protected rights under takaful against takaful participants this Act creates full authority for takaful participants to name any individual as they wish. The Giving Of Conditional Hibah In Takaful Nomination Hibah In Islamic Banking 10

The conflict of jurisdiction between the Syariah and civil courts in Malaysia regarding hibah (gift) cases is a complex issue that has been debated for years. The Malaysian Constitution has allocated two (2) separate jurisdictions for the courts in matters related to civil law and Islamic law. For disputes related to transactional commercial law, such as financial related banking products including matters related to Hibah contracts, they will be disputed in civil courts. Meanwhile, matters related to Islamic law, especially personal and family matters, are within the jurisdiction of the Syariah Court. However, there is an issue where in the case of Latifah Mat Zin with Rosmawati Sharibun, it is an example of a conflict of jurisdiction between the syariah court and the civil court related to Hibah matters. In this case, the Federal Court judge rejected the appeal made by the appellant and ruled that the Hibah law is within the jurisdiction of the Syariah Court. Briefly, this case revolves around money kept in a joint account between the deceased husband and his third wife (the appellant). The issue is whether the Hibah money deposited in the account will entitle the appellant to bring the case under the civil court. The dispute arose when the respondent, the daughter of the deceased from his second wife took the matter to court to file a petition for the Letters of Administration of the deceased's estate including the money kept in their respective joint accounts. The appellant in this case argued that the money was given to her by way of Hibah or gift. Therefore, it does not become part of the estate of the deceased. The High Court which initially heard the case, decided that the applicable law should be the Islamic law of hibah for the determination of the issue. However, in this case, the Court found that no Hibah was made during that period. Therefore, the appellant appealed to the Court of Appeal, and stated that the judges in the High Court erred in deciding that the matter related to the Islamic law of hibah, the law that should be applied is the civil law of banking or contract or the law probate and administration. Conflicts arise when it is not clear whether the Hibah case falls under the jurisdiction of the Shariah or the civil court. Hibah is widely used in banking and insurance, leading to jurisdictional issues as to whether disputes should be challenged in Shariah or civil courts. The absence of specific legislation on Hibah has contributed to unresolved jurisdictional conflicts. The amendment of Article 121(1A) of the Constitution in 1988 aimed to resolve the conflict of jurisdiction between the Shariah and civil courts. However, the research found that jurisdictional conflicts are still unresolved due to the absence of a specific law on Hibah (Muda, M. Z., Rosdi, N., & Said, N. L. M., 2023). The Conflict Of Jurisdiction Between The Shari’ah And Civil Courts Hibah In Islamic Banking 11

IInnhheerriittaannccee CCoommpplliiccaattiioonn LLaacckk ooff ttrraannssppeerraannccyy Hibah may cause disagreements among heirs over how to divide assets when the donor passes away. This problem occurs when significant assets transferred through Hibah are not taken into account when calculating inheritance portions, resulting in inequality among heirs. Making sure Hibah isn't exploited as a ploy to get around Islamic inheritance laws and making it clear that the transferred assets are intended to be included in the inheritance share computation are two ways to solve this issue. When creating hibah, Islamic scholars stress the importance of openness and justice to make sure the rightful heirs are not harmed or treated unfairly (Kavi, 2024). Additionally, when handling issues pertaining to hibah, it is imperative to obtain appropriate assistance from experienced people, such as Islamic scholars or legal specialists. Future misunderstandings, arguments, and possible legal problems can be avoided by being aware of the minute nuances and complexity of these ideas. Encouraging open communication on the idea of Hibah is one strategy to prevent a lack of transparency in Hibah. The more people who are well-known and accept Hibah's knowledge, the more people will be familiar with its ideas, preventing miscommunication and a lack of transparency. As social media is easily disseminated and accessible by the general public, (Azmi et al., n.d.) state that social media is one of the most important strategies to raise awareness of Hibah among Muslims. Furthermore, documentation can overcome Hibah's lack of transparency. Ensuring thorough documentation of Hibah transactions, including justifications, beneficiaries, and inheritance implications, is part of the documentation act. According to Faculty of Syariah and Law, Universiti Sains Islam Malaysia (USIM), Nilai, 71800 Negeri Sembilan et al. (2020), society has now come to prefer the use of papers as a means of proof in cases involving the confirmation of hibah in the Syariah Court. Frequent documentation practices could help prevent Hibah's lack of openness and the issues that could result from it. Hibah In Islamic Banking 12

The basic idea of takaful is that while Hibah must be completed while the individual is still alive, the benefits of takaful do not begin to accumulate until the participant dies. The ownership of these benefits, whether or not they belong to the deceased, how Faraid should be followed in allocating them, and whether or not they can be awarded—all of these issues remain unsettled in this context. The Bank Negara Syariah Advisory Council addressed this matter and adopted the following recommendations regarding the Hibah application in the distribution of Takaful benefits: Hibah status is permanent and irreversible under the Takaful programme. Participants can withdraw any claims they made before to the certificate's maturity, as the Hibah becomes perfect only after al-Qabd. Participants may also decide to cancel the grant that was awarded to them and award it to another individual if the recipient passes away before the certificate matures. The Takaful nomination form must be amended to clearly state that the nominee is either a shareholder or a beneficiary. A banking law in Malaysia called the Islamic Financial Services Act (IFSA) 2013 was passed with the intention of regulating and overseeing the financial operations of Islamic finance organisations (Budiman et al., 2019). Another way of overcoming this issue would be by modifying the Islamic Financial Services Act (IFSA) to define "beneficiaries" precisely and specify the requirements for naming someone as a beneficiary. IFSA should establish rules to guarantee that beneficiaries are people with rights protected by takaful agreements or legal heirs. TTHHEE GGIIVVIINNGG OOFF CCOONNDDIITTIIOONNAALL HHIIBBAAHH IINN TTAAKKAAFFUULL NNOOMMIINNAATTIIOONN Hibah In Islamic Banking 13

Due to the dual nature of the Malaysian legal system, there has been a continuous dispute over jurisdiction between the Syariah Court and the Civil Court over the years. The Civil Court and the Syariah Court are the two primary courts in Malaysia's dual legal and judicial system. This is to make sure that neither court interferes with the other's ability to exercise its own jurisdiction. Clause (1A) of Article 121 was added in 1988 as part of a constitutional change to prevent jurisdictional conflicts. The purpose of this amendment is to prohibit the High Court from having any jurisdiction over cases that are under the purview of the Syariah Court. It is imperative that the two court disciplines be created to work in tandem with one another rather than competing for authority (Yussoff et al. (2022)). Furthermore, It's also advised to use the legal channels at your disposal to find workable solutions that will prevent future conflicts. For instance, Malaysia should pass particular hibah legislation that distinctly outlines the jurisdiction and legal parameters, including both Islamic and civil law concepts, in order to prevent future jurisdictional difficulties in hibah cases. TTHHEE JJUURRIIDDIICCAALL CCOONNFFLLIICCTT BBEETTWWEEEENN TTHHEE CCIIVVIILL AANNDD SSHHAARRII''AAHH CCOOUURRTTSS Hibah In Islamic Banking 14

All-encompassing Programs: These programs should cover both theoretical and practical aspects of hibah. They can be conducted in various formats such as workshops, seminars, and courses aimed at different segments of the Muslim community, including young adults, families, and community leaders. Workshops and seminars can provide detailed insights into the concept of hibah, its legal implications, and its significance in estate planning. Specialists in Islamic jurisprudence, legal practitioners, and financial advisors should lead these events to ensure comprehensive and practical knowledge transfer. Integration in Curriculum: Incorporating hibah education into the Islamic studies curriculum in educational institutions like schools, colleges, and universities is essential. This integration ensures that the younger generation gains a thorough understanding of Islamic inheritance laws (Faraid), the significance of hibah within this framework, and the practical steps involved in executing hibah transactions. Certification Programs: Providing certification programs for estate planners and legal experts is crucial to ensure they possess the necessary skills and knowledge to offer expert advice on hibah matters. Certified professionals can guide their clients accurately and help them implement hibah effectively. Outreach Initiatives: To ensure that information about hibah reaches all community sectors, including those without access to formal education, educational programs should include outreach initiatives. This could involve organizing information sessions at local mosques, community centers, and religious gatherings. Additionally, disseminating informative pamphlets, booklets, and online resources in multiple languages can help engage a broader audience. Educational Initiatives Hibah In Islamic Banking 15

Campaigns: Utilizing social media platforms to launch campaigns can significantly enhance awareness about hibah. These campaigns can highlight the importance and benefits of hibah, as well as the correct procedures for its implementation. Educational posts, infographics, and short videos can be used to explain fundamental concepts in an easily understandable manner. Strategic use of hashtags and engaging content can attract interest and encourage sharing, thereby extending the reach of the message. Consistent Educational Content: Regularly sharing educational material, such as articles, blogs, and e-books, on social media and dedicated websites can provide comprehensive information about hibah. This consistent flow of information helps keep the community informed and engaged. Digital Platforms and Forums: Establishing digital platforms and discussion boards dedicated to hibah can foster a collaborative learning environment. These platforms, such as Facebook Groups, Reddit, or specialized online forums, can serve as spaces for ongoing discussions, sharing personal experiences, and seeking advice. When moderated by experts, these forums ensure the dissemination of accurate and reliable information. Webinars and Live Sessions: Conducting webinars and live sessions on popular social media platforms like Facebook, Instagram, and YouTube offers an interactive way for people to learn about hibah. Experts can discuss various aspects of hibah, answer questions in real time, and provide practical advice. These sessions can be recorded and made available for later viewing, ensuring that the information remains accessible. Social Media Utilizations Hibah In Islamic Banking 16

The concept of Hibah in Islamic finance and law represents a significant aspect of wealth distribution and estate planning among Muslims, particularly in countries like Malaysia where Islamic financial practices are deeply ingrained. Hibah, as a voluntary transfer of assets during one's lifetime, aligns with the principles of generosity and benevolence within Islamic teachings. However, this concept also comes with its set of challenges and complexities, particularly concerning inheritance implications, lack of transparency, conditional Hibah in Takaful, and conflicts of jurisdiction between Syariah and civil courts. In conclusion, addressing these challenges requires a multi-faceted approach. First and foremost, ensuring clarity and transparency in Hibah transactions is essential to prevent misunderstandings and conflicts among heirs. This can be achieved through educational initiatives, social media campaigns, and thorough documentation of Hibah transactions. Additionally, legal frameworks and regulations need to be established or modified to define beneficiaries clearly, safeguard the rights of legitimate heirs, and resolve jurisdictional conflicts between Syariah and civil courts. Overall, promoting awareness, education, transparency, and legal clarity are key recommendations to enhance the effectiveness and ethical implementation of Hibah practices in Islamic finance and estate planning. By addressing these issues comprehensively, the Muslim community can benefit from Hibah as a means of wealth distribution while ensuring fairness, justice, and adherence to Islamic principles. Hibah In Islamic Banking 17

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